Secured debt after bankruptcy

Jakflash102

Hi,

I was made bankrupt in 2007. Before the bankruptcy I secured a loan for a machine on my property. I did not lose my property in the bankruptcy. The machine was repossessed and I'm unsure whether tit's sale covered the whole outstanding debt (the machine was initially around £110,000).

I have recently found out that there is a second charge on my property in relation to this secured loan. Having spoken to the receiver, etc. they have said that they will accept £10,000 as a settlement in order to remove the charge from my property.

I am unsure on my situation, as I had assumed that all debts would be discharged on completion of the bankruptcy. Is there a way for this charge to be removed without paying a settlement? Alternatively am I likely to be able to come to an agreement with the company who has the charge over the property?

Any advice or information on this would be greatly appreciated.

Many thanks.

ToxtethO'Grady

As the secured debt was in place before the BR it's not discharged on completion and the charge will stay until you pay to remove it


The company may accept a settlement but they will usually want an up to date income and expenditure and a reason for settling when they can wait and get the full balance on sale or death.